The GENIUS Act is poised for a Senate vote this week, marking a significant step towards stablecoin regulation in the U.S. According to a Monday report from Bernstein, once passed, the act will position stablecoins as a primary financial mechanism on the internet. Stablecoins, which peg their value to assets like the U.S. dollar or gold, currently play an essential role in the crypto market, aiding both payment systems and international money transfers.
Bernstein anticipates that the act, officially called the Guiding and Establishing National Innovation for U.S. Stablecoins Act, will not only stimulate innovation but also prioritize U.S.-regulated issuers in the stablecoin market. The legislation mandates federal oversight of stablecoins valued at over $10 billion while allowing for state-level regulation that aligns with federal standards. This guidance characterizes stablecoins as a form of digital cash, promoting broader use in payment systems beyond mere settlements for crypto transactions.
A notable provision is that the bill would prevent non-financial public companies from becoming stablecoin issuers. Reports suggest major retailers like Amazon and Walmart have been interested in stablecoin applications, yet they will need to collaborate with regulated issuers if they wish to integrate these digital currencies.
Bernstein anticipates that the act, officially called the Guiding and Establishing National Innovation for U.S. Stablecoins Act, will not only stimulate innovation but also prioritize U.S.-regulated issuers in the stablecoin market. The legislation mandates federal oversight of stablecoins valued at over $10 billion while allowing for state-level regulation that aligns with federal standards. This guidance characterizes stablecoins as a form of digital cash, promoting broader use in payment systems beyond mere settlements for crypto transactions.
A notable provision is that the bill would prevent non-financial public companies from becoming stablecoin issuers. Reports suggest major retailers like Amazon and Walmart have been interested in stablecoin applications, yet they will need to collaborate with regulated issuers if they wish to integrate these digital currencies.
